Which capital budgeting technique step in the decision process is not used to evaluate a group of independent projects?
A) compute the statistic
B) have a run off between the mutually exclusive projects choosing the one with the best statistic
C) compare the computed statistic with the benchmark to decide to accept or reject the project.
D) all of the above are used

Question

Quizplus · Accepted Answer

The runoff between mutually exclusive projects (choice B) is not used to evaluate a group of independent projects. This step is specific to situations where only one project can be chosen from a set of competing alternatives, not when evaluating multiple projects that can all be accepted if they meet the investment criteria.

Which Capital Budgeting Technique Step in the Decision Process Is